In the most basic model presented in the text, when aggregate expenditures cross the 45-degree line,
a. saving equals intended investment
b. saving is greater than intended investment
c. saving is less than intended investment
d. saving equals consumption
e. saving equals inventories
A
You might also like to view...
Unemployment insurance tends to lead to the unemployed worker spending less time unemployed
Indicate whether the statement is true or false
Suppose 100 citizens each derive marginal benefit from submarines according to the function MB = 10 - Q. If subs cost $100 each to produce, what is the efficient quantity of submarines?
What will be an ideal response?
What is multicollinearity? In general, how would you know if you had a problem with multicollinearity, and how could you correct it?
What will be an ideal response?
The Fed buys $1 million in bonds from a bond dealer. The bond dealer's bank experiences
A) an increase in assets of $1 million as its reserves increase and a decrease in liabilities as its transactions deposits fall. B) no change in assets or liabilities. Assets both increased and decreased by the amount of the check. C) a decrease in assets of $1 million as the checking account of the bond dealer increased, and a decrease in liabilities as the bank's deposits with the Fed increased by $1 million. D) an increase in assets of $1 million as its reserves increase and an increase in liabilities of $1 million as the deposits in the bond dealer's transactions account increases by $1 million.